The first major change permits new SBA loans to be made with an alternative base interest rate, the one month LIBOR rate, in addition to the prime rate, which was previously allowed. In recent months, both the prime and LIBOR rates have not yet returned to their historical relationship of roughly 300 basis points. The change seeks to correct the mismatch between the rates which are apparently squeezing SBA lenders out of the lending market, since their costs are based on the LIBOR rate.

The second change allows a new structure for assembling SBA loans into pools for sale in the secondary market. The enhanced flexibility in loan pool structures can help affect profitability and liquidity in the secondary market for SBA guaranteed loans. In turn, by using the average interest rate loan pools are easier to create, providing more investors with an incentive to bid on these loans.

“The challenge small businesses face today is not the cost of capital, it is access to capital,” said SBA’s Acting Administrator Sandy K. Baruah. “Interest rates are at historically low levels meaning money is inexpensive, yet lenders aren’t lending and borrowers aren’t borrowing. This indicates markets are frozen due to liquidity concerns. This interim final rule is an important step to re-energize the lenders to make SBA-backed loans and will help open the gateway of capital for entrepreneurs.”

To learn more about SBA’s guaranteed loan programs visit www.sba.gov.

“With a difficult lending environment and more conservative underwriting on the part of investors, deal activity in 2008 has tapered significantly,” Hennis states. “However, we still expect to see between $5 billion and $6 billion in assets change hands this year.”

The current acquisitions pace is less than one-fourth that of last year. At this point in 2007, over 190 properties traded, according to Hospitium. In contrast, only 45 upscale and luxury lodging facilities have
sold thus far in 2008. Moreover, market conditions continue to rein in per-room pricing, declining from
$202,000 in 2007 to $168,000 through the first half of this year.

“The debt markets, which helped to drive values in recent years, are not as competitive today,” notes
Hennis. “While debt is still available, the residential mortgage crisis and the struggling economy have
caused some lenders to pull away from the market. Consequently, the terms are less attractive with lower
loan-to-value ratios and higher spreads than what we observed during the peak of the cycle.” “The equity side of the deal has also changed,” states Hennis. “With an uncertain economic outlook, coupled with higher airfares and rising gas prices weighing on the travel industry, investors are more conservative in evaluating acquisition opportunities. Double-digit RevPAR growth projections are no longer supportable, with many operators anticipating a tough 2009.”

Hospitium is a hotel consulting firm that specializes in the upscale and luxury sectors of the lodging
industry. Hospitium provides advisory services and products, including feasibility studies, due diligence, underwriting, appraisals, strategic planning, and transaction guidance.

• 10 Franklin, MA
• 13 Manchester, NH
• 33 Hamden, CT
• 35 Cambridge, MA
• 38 Worcester, MA
• 63 Lincoln, RI
• 64 Fairfield, CT
• 88 Brunswick, ME
• 100 Colchester, VT

The alpine visits represented an increase of over 20% compared to the 2006-07 winter, with cross country skier areas realizing an increase of more than 66% over the previous season. The recent figures were a welcome relief after several consecutive winters of below average visits and snowfall totals. The 2007-08 season consisted of historic snowfall throughout the winter, allowing for a long ski season with consistently outstanding snow conditions. Several holiday periods yielded record numbers which annually can account for as much as 30% of the state’s ski business.

“Anytime we receive snow early in the winter at our ski areas, and in eastern Massachusetts and southern NH, and it continues consistently, we have a distinct advantage in encouraging skiers and riders to visit the Granite State.  There’s simply no substitute for our guests waking up to snow in their backyards,” noted Karl Stone, Ski NH’s Marketing Director. 

The numbers are particularly encouraging considering current concerns with oil prices and the economy.  Alice Pearce, Ski NH’s President, stated, “While no one enjoys the escalating price of gas, we’re glad that New Hampshire ski areas provide an affordable option to ski and ride with family and friends.  The fact that our resorts offer big mountain skiing and riding with beautiful views of the White Mountains and the lakes regions, all within a short drive of many major markets, helped us achieve this record.”

Ski NH is the statewide association representing 39 alpine and cross country resorts and more than 200 lodging properties in New Hampshire. For more information on ski areas, lodging packages, lift ticket deals, and updated events at Ski NH mountain resorts, call Ski NH at (800) 88-SKI-NH (800-887-5464) or visit the Ski NH website at www.SkiNH.com.

1. Even in real estate, first impressions are lasting. A smartly priced property will generate and maintain much more attention from the start.
2. A property priced too high often sends the wrong message, especially to a savvy buyer or cooperating broker actively seeking only sensible opportunities offered by serious sellers. The fact is most prospects initially operate in a cursory “know it when I see it” fashion and take then the time to dig deeper once their interested is piqued. Failing to develop the initial interest due to an unrealistic listing price could serve to make your listing a nonstarter.
3. Relying on a pricing strategy which employs a series of price reductions is generally not a good plan. To begin with, after each price change the task of making all interested parties (past and future) aware of the price change can be difficult. Multiple price changes can also send out the “only testing the waters” impression and that’s one fishing trip serious prospects are adept at avoiding. Lastly, many smart and well advised buyers routinely interpret successive price reductions as growing desperation on the part of the seller.

While not an exact science, setting your sights on the center of the pricing target is the best way to bring your commercial property to the market.

PIC Design, is a manufacturer and supplier of tight-tolerance, precision mechanical components for use in the motion control industry. PIC Design is located in Middlebury, Connecticut and has over 20,000 active customers and had revenues of approximately $10.0 million for the year ended December 31, 2007.

RBC Bearings Incorporated is an international manufacturer and marketer of precision bearings and components. Founded in 1919, the Company produces highly technical or regulated bearing products requiring sophisticated design, testing, and manufacturing capabilities for the diversified industrial, aerospace and defense markets. This New England business is headquartered in Oxford, Connecticut and currently employs approximately 2,146 people and operates 22 manufacturing facilities in four countries.